Air France-KLM weighs up long haul aircraft spending spree

Despite posting huge losses in 2009, Air France-KLM plans to start negotiations later this year to buy 100-150 long-haul aircraft worth up to USD38 billion at list prices. The order is anticipated for 2011 at the earliest. The carrier is thought to be considering the B787-9 version and the Airbus A350-900 to replace its A330s, A340s, B777-200s and MD11s (KLM still has 10 MD11s in the fleet). The carrier is also weighing up the A350-1000 and the new version of the B777-300 to replace its existing B777-300s and B747-400s. 

The twin-aisle B787-9 is a slightly bigger version of the B787-8, seating 250-290 passengers. It has a range of 8,000 to 8,500 nautical miles (14,800 to 15,750 km) and a cruise speed of Mach 0.85.

The A350-900 is the first model scheduled to enter service in 2013, seating 314 passengers in a three-class cabin nine-abreast configuration. Its range is similar to that of the B787-900 at 15,000 km (8,100 nautical miles). Airbus claims that the A350-900 will have a decrease of 16% manufacturer’s weight empty (MWE) per seat, a 30% decrease in block fuel per seat and 25% better cash operating cost against the B777-200ER, against which it was originally targeted.

The A350-900R variant also will feature higher engine thrust, strengthened structure and landing gear of the A350-1000 (below) giving it an estimated range up to 17,600 km (9,500 nautical miles), potentially enhance able to 19,100 km (10,315 nautical miles), thereby better able to compete with the B777-200LR and capable of non-stop flights from Paris or Amsterdam to Auckland. The A350-1000, which has an 11-frame stretch over the -900, is scheduled to enter service at the end of 2015. It is the largest variant of the A350 family and will seat 350 passengers in a three-class cabin nine-abreast layout with a range of 14,800 km (8,000 nautical miles). It is designed to compete with the B777-300ER (also under consideration by AF-KLM and to replace the A340-600.

Annus horribilis

With 202.5 million passenger-kilometres flown in the financial year ended 31-Mar-2010, AF-KLM, which merged in May-2004, is Europe’s largest airline. 2009-10 was, according to its CEO, Pierre-Henri Gourgeon, an ‘annus horribilis’ as it had to contend with the global recession and the still not fully explained loss of an A330-200 out of Rio de Janeiro in May-2009. (The search for the flight recorders has again been suspended this week and legal claims could top EUR25 million). Added to this was the impact of the Icelandic volcanic ash cloud, which has cost it EUR260 million in revenue, and counting.

This contributed to a net loss of EUR1.56 billion (USD1.93 billion) for the fiscal year, almost double that of the previous year, as revenues fell by 15% and passengers by 4.1%. Even so, management is confident it can at least break even in 2010/11, with KLM perhaps recording a small profit as it saw passenger and cargo figures start to pick up in the last quarter of 2009-10.

See related report: British Airways completes woeful year for Europe’s Big Three. Outlook brighter

Air France took delivery of its first A380 on 30-Oct-2009, the first European airline to do so. It has 12 A380s on order. But the heavy operating losses it experienced caused it to consider deferral of delivery of some A380 and B777 passenger and cargo aircraft, though it ultimately did not do so. KLM has no A380s on order.

Air France-KLM has been a key player in the much-anticipated consolidation of the European airline industry, and throughout 2008/9 had been actively in a successful pursuit of Alitalia, eventually acquiring a 25% stake. However, its pursuit of CSA Czech Airlines, one of the biggest privatisation efforts in central and Eastern Europe, did not have the same ending, AF-KLM withdrawing from the tender process due to the impact of the economic environment on the airline industry. It did, however, seek to strengthen its partnership with CSA.
It is not been all bad news for Air France-KLM, which did benefit from the IPO of the GDS Amadeus in Apr-2010 to the tune of EUR146 million to EUR210 million, funds it will use to pay down debt. The deal, Western Europe’s largest since 2008 netted EUR1.32 billion in total.

Source: Centre for Asia Pacific Aviation

Air Transport Association Says FAA Must Demonstrate Benefits of $2.5-$6.2 Billion Cost For ADS-B Out Equipage Under New Rule

The Air Transport Association of America (ATA), the industry trade organization for the leading U.S. airlines, today issued the following statement in response to the release of a new Federal Aviation Administration (FAA) regulation requiring aircraft operating in U.S. airspace to be equipped with Automatic Dependent Surveillance-Broadcast Out (ADS-B Out) equipment:

“With an FAA cost estimate of between $2.5 and $6.2 billion, ATA is carefully reviewing the ADS-B rule released today, and will have no further comment until that in-depth review is complete. ATA has said repeatedly that any rule requiring this type of equipage and expense must be based on a solid business case in which the true benefits and real costs are fully understood and justified. We are hopeful that the FAA regulatory evaluation supporting the rule will be made available soon in order to help facilitate our review,” said ATA President and CEO James C. May. Annually, commercial aviation helps drive more than $1 trillion in U.S. economic activity and nearly 11 million U.S. jobs. On a daily basis, U.S. airlines operate nearly 25,000 flights in 80 countries, using more than 6,000 aircraft to carry an average of two million passengers and 50,000 tons of cargo. 

Source: Air Transport News

FAA Announces Performance Standards for Critical NextGen Avionics

The Federal Aviation Administration (FAA) announced today the performance requirements for aircraft tracking equipment that will be required under the Next Generation Air Transportation System, or NextGen. The avionics will allow aircraft to be controlled and monitored with greater precision and accuracy by a satellite-based system called Automatic Dependent Surveillance – Broadcast (ADS-B). 

“Today we have reached a major NextGen milestone,” said U.S. Transportation Secretary Ray LaHood. “This technology represents another step forward in our ability to make America’s skies the safest in the world.” The final rule, developed with extensive input from the aviation community, requires aircraft flying in certain airspace to broadcast their position via ADS-B by 2020. The rule mandates that the broadcast signal meet specific requirements in terms of accuracy, integrity, power and latency. “This rule gives the green light for manufacturers to begin building the onboard equipment that will allow our air traffic controllers to know where aircraft are with greater precision and reliability,” said FAA Administrator Randy Babbitt. “That is one of the key elements of NextGen that will improve the safety and efficiency of flight.” Additional ADS-B services should allow pilots to view cockpit displays to see the location of other aircraft in the sky around them. ADS-B displays are envisioned that will show pilots where they are in relation to bad weather and terrain – even at night or in conditions with poor visibility – and provide flight information, including temporary flight restrictions, which allow pilots to plan safe, more efficient routes. Some of this information is now being broadcast free to aircraft equipped with ADS-B in the Gulf of Mexico, South Florida and in the airspace above Louisville, Philadelphia and Juneau, Alaska. Those areas were chosen as key sites to roll out ADS-B due to challenges presented by vast stretches of water, rugged terrain and traffic congestion. These areas also are populated by aircraft already equipped with ADS-B. The nationwide rollout of ADS-B ground stations will be complete in 2013. By 2020, the FAA will require ADS-B equipment for aircraft flying in airspace including Classes A, B and C, around busy airports and above 10,000 feet. The final rule can be found on: 

 

http://www.federalregister.gov/OFRUpload/OFRData/2010-12645_PI.pdf 

 

Source: Air Transport News

Sustaining Improvements in NATS’ Performance and Financial Resilience into the Future

The UK Civil Aviation Authority has today published for consultation its price control proposals for the En Route part of NATS’ air traffic control business (NERL) for Control Period 3 (CP3), which will run for four years from 2011 to 2014. 

The proposals give NERL strong incentives to sustain into the future the much improved delay performance it has achieved in the current control period (CP2). The CAA proposes a target average level of performance at 12.5 seconds per flight with additional incentives to reduce the delay of the most delayed flights. This compares with average flight delays of around 25 seconds for most of the current control period. NERL will also be required to meet service quality standards during the period of the Olympics and Paralympics when several thousand additional flights are expected. To ensure NERL is able to sustain this high level of performance into the future the CAA is allowing for investment of £563m (outturn prices) for CP3. This is intended to deliver new systems that will enhance NERL’s capacity to handle traffic growth, as well as enabling it to play a full role in European technological development. This follows the significant capital expenditure programme in recent years culminating in the consolidation of operations at just two air traffic control centres in Swanwick and Prestwick. NERL has reduced its operating costs in CP2 and for CP3 the CAA is proposing an allowance for operating costs some three per cent tougher than NERL’s March 2010 Business Plan. The CAA is proposing a pre-tax real cost of capital of 7.5 percent which is 150 basis points below NERL’s estimate. However, some of NERL’s costs such as pensions are forecast to rise significantly in CP3 which, along with traffic levels in 2010 being lower than anticipated, will have the effect of causing an initial price increase in 2011. Thereafter prices would return to a downward path and by 2014 would be seven per cent lower in real terms than at the end of CP2. Commenting on the proposals, Dr Harry Bush, CAA Group Director of Economic Regulation, said, “The CAA’s CP3 price control proposals will be implemented around a decade after the part-privatisation of NATS and the subsequent financial and risk sharing arrangements (known as the Composite Solution) which followed the exceptional events of September 11, 2001. These arrangements have enabled NERL to fund its investment programme and deliver improved service quality for the benefit of customers whilst maintaining strong financial resilience. “The current economic climate and operating conditions highlight the importance of maintaining this financial resilience. The CAA is proposing to do so by imposing direct controls on the extent of NERL’s gearing, a shift away from the emphasis that has previously been placed on credit ratings.” The CAA is making these proposals before European regulatory arrangements under a Single European Sky (SES II) have been finalised. The CAA will take these European developments into account and expects to issue an update in July. Given the environmental and other benefits from having a flight efficiency metric, NERL has accelerated its work programme in this area and the CAA is hopeful that a metric incentivising environmental efficiency can be developed in time for CP3. The CAA expects to publish its proposals regarding the introduction of a flight efficiency metric in late August, following NERL’s work. 

 

Source: Air Transport News

 

 

English High Court Permits Air Transport Association Legal Challenge to EU Emissions Trading Scheme to Proceed

The Air Transport Association of America (ATA), the trade organization for the leading U.S. airlines, said today that it was pleased that the English High Court will allow ATA permission to proceed with its legal challenge to the unilateral extension of the EU emissions trading scheme to international aviation. The High Court will shortly refer the case to the European Court of Justice (ECJ) in Luxembourg for a ruling on the validity of the EU law. 

“The High Court decision to refer this case to the European Court of Justice is an important step, as only the ECJ has the authority to rule on the Europe-wide directive that applies the European Emissions Trading Scheme to our airlines. The unilateral extension of the EU ETS to international aviation is contrary to international law both as an extraterritorial action and an improper tax or charge. It also clearly stands in the way of an appropriate and effective global solution,” said ATA Vice President, Environmental Affairs, Nancy Young. ATA is challenging the EU directive extending the existing emissions trading scheme (ETS) to airlines from around the world engaged in international aviation activities. ATA and its member airlines are committed to reducing greenhouse gas emissions from aviation. ATA’s view is that the unilateral approach taken under the EU ETS not only violates critical international law principles, but also imposes costly policies on international aviation that siphon away from the airlines the very funds they need to continue to improve their strong record of continuous environmental improvement. ATA and its members have joined other airlines around the world in supporting a global framework for greenhouse gas measures under the International Civil Aviation Organization (ICAO), the United Nations body charged with establishing environmental and other standards for international aviation. “The legal case is important as a means of addressing what is wrong with the European scheme, but also as an opportunity for us to continue to pursue an approach that is appropriate for this global industry. The U.S. airline industry has adopted a set of measures and targets as part of the worldwide aviation industry commitment to a global framework on aviation emissions,” Young said. “Through this commitment, the U.S. airlines alone will save more than 16 billion metric tons of greenhouse gas emissions through 2050 on top of substantial savings already achieved.” For more on the ATA climate change commitment, see www.airlines.org/Environment/ClimateChange/Pages/21stCenturyAviation-ACommitmenttoTechnology,EnergyandClimateSolutions.aspx 

The case is R (on the application of the Air Transport Association of America, Inc. and Others) v. Secretary of State for Energy and Climate Change. ATA brought the case on behalf of all of its members; American Airlines, Inc., Continental Airlines, Inc. and United Air Lines, Inc. also are participating directly as they have been designated by the European Commission as falling under UK jurisdiction. The U.S. commercial aviation industry improved fuel efficiency by approximately 110 percent between 1978 and 2008, resulting in 2.7 billion metric tons of carbon dioxide (CO2) savings – roughly equivalent to taking more than 19.5 million cars off the road each year. 

Source: Air Transport Association of America 

European LCCs now carry a third of all pax. Can full service airlines confine damage to short-haul?

As European LCCs such as Air Berlin, Ryanair, easyJet, Vueling and Wizzair expanded their capacity and traffic in 2009, their full service competitors have been in contraction mode, as they sought to reduce losses.The members of the Association of European Airlines (AEA) handled 20 million fewer passengers in the year, a reduction of nearly 6%. Within Europe, where they compete directly with the short haul LCCs, cross-border traffic was down 5.3%. the members of the European Low Fare Association (ELFAA), by contrast, increased passenger numbers by 8.7%, to 13 million.

Low cost airlines, as defined by OAG, now occupy a capacity share of 36.1% within EU states. Europe’s Big Three LCCs - Ryanair, easyJet and non-ELFAA member, Air Berlin - handled over 9.7 million passengers in Feb-2010 between them, a 7.4% year-on-year increase, preceded by growth of 7.3% to 9.5 million passengers in Jan-2010, for year-to-date passenger numbers exceeding 19 million.  

The three carriers between them handled over 139 million passengers in 2009, a 7.7% year-on-year increase and a massive 80% increase from 2005 levels, showing their importance not only within the LCC sector, but within the overall European air transportation market in general. LCCs accounted for some 36% of seats within Europe last year.

LCC capacity (seats) share within geographical regions: 2009

Source: Centre for Asia Pacific Aviation & OAG

For the most recent month, Feb-2010,  the bulk of the 7% growth seen among Europe’s three largest LCCs was attributed to easyJet (not the usual Ryanair). easyJet reported double-digit year on year passenger growth in the month (of +12.3% to 1.4 million), while Ryanair and Air Berlin both reported single-digit growth, of 6% and 3.1%, respectively.

However, Ryanair, with its 4.4 million passengers in the month, remains by far the largest European LCC, with more than three times the number of passengers as easyJet (at 1.4 million) and more than double the size of Air Berlin (with 2.0 million passengers, including those travelling on the acquired TUIfly routes). This relegates easyJet to the third largest European LCC, after Ryanair and Air Berlin.

Rerouting full service airline strategy

The implications of the LCCs’ market expansion potentially transcend merely the local intra-European services. In our report, Airline structural change in Europe: a major turning point – if labour allows it,

we noted the various ways – often with a common theme – that the major European carriers were adapting to combat the inroads made by the low fare operators.

As the full service airlines’ intra-European market share is eroded, they not only suffer financial losses in head to head competition, but also lose valuable parts of their connecting services into long haul operations – where, for the time being, they are generally free from low cost operator competition.

That immunity is gradually being threatened. Long haul remains largely the preserve of major network flag carriers, but, as the European market becomes crowded, LCCs will look increasingly towards a refined model of the traditional long haul operation. This offers not only fresh pastures in their own right, but also valuable feed into their now-powerful short haul European services – often along with the promise of higher yields.

Long haul low cost operations from Asia Pacific are establishing a trend, with AirAsia X and, soon, Jetstar, offering service into Europe with a lower cost base. Each has already established the economics of long haul operations within their own region.

Meanwhile, in Europe, Air Berlin is offering another model, as it evolves into much more than a short haul low cost operator.

Connecting into international routes: following AirAsia X and Air Berlin

Air Berlin’s strategy is to focus on maintaining profit margins over building market share although the carrier, with the acquisition of the TUIfly routes, has so far managed to grow market share and unit revenues concurrently.

By taking over an established network, as opposed to growing it organically, Air Berlin was able to make a quantum leap into a whole different operation, while maintaining its low cost profile. TUIfly’s international network embraces a very cost-efficient array of routes to north America, the Caribbean, northern and southern Africa and Asia.

The more cautious and route-strategic approach of this increasingly powerful competitor is not escaping the attention of its peers. 

With their well-entrenched European networks – usually together with the advantage of multiple “hubs” – it is surely a matter only of time before several of the larger European LCCs link into long haul international services.

Whether they do it organically, using their own aircraft, or whether they seek low cost partners (as many of the Asian and north American carriers already are); whether they adopt formal interlining and connectivity, or simply make it easy to self-connect at busy hubs, it would appear that the nightmare for full service airlines is still unfolding.

Many network airlines still have the underlying power which membership of a global alliance brings. These undoubtedly help preserve their legacy advantages. But sustained low cost operations have been shown to have remarkable resilience, usually far beyond traditional expectations.

So any full service airline now undergoing a substantial restructure of its short haul operations would do well to have provisional plans in place for modifying its long haul thinking as well. Hoping against hope that all that nice premium traffic will return to the fold no longer offers a suitable strategic foundation for the long term.

Source: Centre For Asia Pacific Aviation

Asdhes slow down Recovery from the global economic recession

The International Air Transport Association (IATA) announced international scheduled air traffic results for April 2010. Passenger demand slumped by 2.4% as a result of massive flight cancellations centered in Europe during the six days in April following the eruptions of an Icelandic volcano. The fall in traffic interrupted the industry’s recovery from the global financial crisis. 

International scheduled cargo traffic, less impacted by the cancellations, saw the pace of its recovery slow to 25.2% growth in April (down from the 28.1% improvement recorded in March).

“The ash crisis knocked back the global recovery - impacting carriers in all regions. Last month, we were within 1% of pre-crisis traffic levels in 2008. In April, that was pushed back to 7%,” said Giovanni Bisignani, IATA’s Director General and CEO.

International Passenger Demand
The ash crisis accentuated the asymmetrical nature of the economic rebound.

• European carriers posted an 11.7% demand drop in April (compared to a 6.2% increase in March). Uncertainty of service reliability in the aftermath of the ash cancellations and major unrest in Greece as a result of the currency crisis added to the weaker European demand during the month. Limited GDP growth expectations of 0.9% continue to dampen demand across the continent.
• North American carriers posted a 1.9% decline in demand, primarily as a result of the impact of the ash crisis on North Atlantic routes. This is a major step backwards from the 7.8% growth recorded in March. This fall in demand was less than half the 4.5% cut in capacity, pushing load factors to 80.2%.
• Asia-Pacific carriers saw their strong growth slow to 3.5% (from the 12.9% growth recorded in March). Robust GDP growth of 7% (Asia excluding Japan) is supporting the strong recovery.
• Middle Eastern airlines recorded the strongest traffic growth at 13.0%, which is about half the 25.9% increase of the previous month. 
• African carriers also saw their recovery slow to 8.6% growth in April, down from the 16.9% growth recorded during the previous month. 
• Latin American carriers posted a 1.2% increase for the month, a quarter of the 4.6% growth recorded in March, which was already a weak month as a result of the Chilean earthquake.
  

International Cargo Demand
Air freight was also impacted by the ash crisis, although less dramatically than passenger traffic. The global purchasing managers’ index rose to its second highest level ever in April, indicating that the fundamentals of the air freight business were not impacted by the crisis. We are, however, nearing the end of the inventory cycle and would expect freight growth to slow down over the rest of the year.

• European carriers showed the weakest growth at 8.3%, down from the 11.5% growth recorded in March. Poor economic performance prior to the ash crisis had seen European airlines lagging behind the rebound experienced by other regions.
• North American carriers recorded a 23.8% increase. While impressive, this was still below the 29.0% recorded in March.
• Asia-Pacific carriers, which make up 46% of international cargo operations, recorded growth of 33.2%, slightly below the 35.4% recorded during March.
• Middle Eastern carriers saw their growth rate slow to 25.9% from the 35.5% recorded in March.
• Latin American carriers saw the largest increase in cargo demand for the second straight month with a 63.0% increase - an improvement on the 47.9% recorded in March.
• African carriers also showed an improvement, from 51.4% in March to 54.6% in April.

“The ash crisis was a shock. While there is always a danger of the consequences of renewed volcanic eruptions, the impact on passenger confidence should be limited. Unfortunately, we are trading ash for two additional uncertainties - strikes and a growing currency crisis - both of which are also focused on Europe,” said Bisignani.

“The labor unrest plaguing Europe this year is unbelievable. It’s a tough competitive world. Airlines need to reduce costs to be competitive. Labor must realize that their pay checks are supported by the performance of the company. The middle of a very fragile recovery is not the time to be asking for salary increases or improved conditions. This mentality is divorced from reality,” said Bisignani.

Source: IATA

Ashes don't pay: Court rejects passenger compensation claim in sweden

Ryanair today (26thMay) welcomed the decision of the Svea Court of Appeal in Stockholm which declared that passengers are not entitled to compensation in cases where extraordinary circumstances apply, as the court overturned the decision of the District Court of Nykoping which awarded two passengers compensation (even though it accepted extraordinary circumstances were present) in breach of the provisions of EU261. 

Ryanair again called on the ARN and RAD&RON to properly apply the EU261 regulations and stop misleading Swedish passengers on compensation claims. Ryanair called for an end to its blacklisting for not paying compensation when EU261 confirms that passengers are not entitled to any such payments in extraordinary circumstances. Ryanair’s Stephen McNamara said:   “This decision of the Svea Court of Appeal reinforces the provisions of the EU261 which provides that no compensation is due to passengers in cases governed by extraordinary circumstances which are beyond an airlines’ control. We understand that cancelled flights can be frustrating. However, airlines must always take decisions which prioritise the safety of our passengers, crew and aircraft over convenience. We now call on the ARN and RAD&RON to adhere to properly apply the EU261 regulations and stop misleading passengers with incorrect advice about compensation payments which passengers are not entitled to in cases of extraordinary circumstances.” 

Source: Air Transport News

A-SMGCS enters operation in Hamburg, facilitating improved traffic control on the apron, and enhanced ground mouvements traffic efficiency and safety

The ground situation monitoring system of the future has a name: A-SMGCS. And at Hamburg Airport, the future has already begun. The innovative “Advanced Surface Movement Guidance and Control System” has successfully entered operation at Hamburg Airport. The three project partners, DFS Deutsche Flugsicherung GmbH (German Air Traffic Services), DLR Deutsches Zentrum für Luft- und Raumfahrt e.V. (German Aerospace Center) and FHG Flughafen Hamburg GmbH (Hamburg Airport) presented their joint project, unique in Europe, at a press conference at Hamburg Airport. 

Michael Eggenschwiler, CEO of Hamburg Airport: “We are really delighted that our cooperation with German Air Traffic Services and the German Aerospace Center, which began in 2008, is bearing fruit today. Hamburg Airport is one of the first airports in Europe where the visionary A-SMGCS ground radar is in operation. The simultaneous installation of a test environment linked with operative systems is unique in Europe. A-SMGCS supports the work of apron controllers with optimised visual representation of the situation, contributes to increased security in ground traffic control and facilitates more efficient traffic management. This not only saves costs, it also benefits the environment. A-SMGCS will enable us to reduce airside emissions by a total of 10 percent.” The head of DFS, Dieter Kaden, praised both the new system itself and the strong, close cooperation between the airport, research & development, and air traffic control. “Only by working together can we master the challenge of making sure that air travel remains not only the safest but also the most punctual means of transport, even with future increases in traffic volume.” Prof. Dr Joachim Szodruch, the DLR board member responsible for aviation research, emphasised that “this new ground traffic management system and the associated test environment mean that we have created something that is to date unique in Europe: the possibility of optimising ground traffic movements, to organise processes in a safer way, and to decisively reduce the burden of apron controllers. This exemplary test environment is currently being utilised within the framework of the “Efficient Airport 2030” flagship project, thereby having a definitive influence on further research work within the field of Total Airport Management.” 

Source: Air Transport News

Aviation Organizations Launch Safety Information Exchange

Montreal – The International Air Transport Association (IATA), along with three governmental aviation safety organizations, took the first step to creating a global information exchange to improve aviation safety.

IATA, together with the International Civil Aviation Organization (ICAO), the US Federal Aviation Administration (FAA), and the Commission of the European Union (EU), has signed a Declaration of Intent to exchange safety data. The signing took place during the ICAO High-Level Safety Conference in Montreal.

“Today’s milestone agreement marks the first time the global aviation community has come together to work on a global safety information exchange. Data must drive our actions so that we can focus our joint efforts on reducing the greatest risks,” said Giovanni Bisignani, IATA’s Director General and CEO.

“Working together with governments using global standards, safety has improved tremendously. In 1945, there were 9 million passengers and 247 fatalities. In 2009, 2.3 billion people flew with 685 fatalities. Every fatality is a human tragedy and reminds us that we must do better. Today’s agreement is one more important step to make a safe industry even safer,” said Bisignani.

Audit data will be a key element in the project. IATA, ICAO, the FAA and the EU conduct audit programs that collect complementary safety information. “We must understand safety trends, not just from the handful of accidents each year, but by bringing together and analyzing data from millions of safe flights. With this we can take more effective action to reduce risks and improve safety performance,” said Bisignani.

“There is no competition when it comes to safety. Cooperation is the way forward. We have a common goal of zero accidents and zero fatalities. The safety data from audits and oversight programs contains important parts of a whole picture. Agreeing to put this data together is a major step forward,” said Bisignani.

The four organizations will now start work on a way to standardize safety audit information and ensure compliance with local privacy laws and policies. This is targeted to be completed within 12 to 18 months.

The 2009 global accident rate, measured in hull losses per million flights of Western-built jet aircraft, was 0.71. This is a significant improvement of the 0.81 rate recorded in 2008. Compared to 10 years ago, the accident rate has been cut 36% from the 1.11 rate recorded in 2000.

Source: IATA.org